SEOUL, March 19 (AJP) — Asian stock markets opened lower on Thursday as a renewed surge in oil prices driven by escalating Middle East tensions and a more hawkish Federal Reserve outlook weighed on investor sentiment.
Israel struck Iran’s South Pars gas field on Wednesday, marking its first attack on the country’s energy infrastructure in retaliation for the killing of senior intelligence and military officials.
The escalation sent Brent crude up 6.1 percent to $109.75 per barrel, with Citi warning prices could climb further toward $120.
Investor sentiment was also pressured by hawkish signals from the Federal Reserve. The Fed held its benchmark interest rate at 3.50–3.75 percent and refrained from offering forward guidance amid uncertainty stemming from the Middle East conflict. However, markets interpreted its upgraded inflation outlook as a hawkish signal.
All three major U.S. stock indexes fell more than 1 percent overnight.
The Korean won weakened sharply, with the one-month non-deliverable forward (NDF) rising to 1,508.25 per dollar. In onshore trading, the won fell to 1,500.20 per dollar from a previous close of 1,483.1.
Technology heavyweights declined, with Samsung Electronics and SK hynix down around 3 percent and 4 percent, respectively, partially erasing their previous gains of 7.53 percent and 8.87 percent.
The declines tracked overnight weakness in global chip stocks, with Nvidia down 0.84 percent and ASML falling 2.45 percent, pushing the Philadelphia Semiconductor Index down 0.53 percent.
Losses were broad-based across sectors.
Automakers declined, with Hyundai Motor down 3.85 percent to 524,000 won and Kia falling 2.11 percent to 171,400 won.
Battery and industrial shares also weakened. LG Energy Solution slipped 2.35 percent to 374,500 won, Samsung C&T fell 2.68 percent to 291,000 won, and SK Square dropped 3.65 percent to 60,700 won.
Shipbuilders and defense-related stocks moved lower, with HD Hyundai Heavy Industries down 3.73 percent to 568,000 won and Hanwha Aerospace falling 1.80 percent to 1,365,000 won.
Financials traded lower, with KB Financial down 1.36 percent to 152,600 won and Shinhan Financial falling 1.89 percent to 93,200 won.
Biopharmaceutical shares also slipped, with Celltrion down 3.34 percent to 202,500 won and Samsung Biologics falling 1.66 percent to 1,599,000 won.
Brokerages said near-term volatility may increase, though a recovery remains possible.
Han Ji-young, an analyst at Kiwoom Securities, said energy-driven inflation uncertainty has reinforced the Federal Reserve’s hawkish stance. She added that a stabilization in geopolitical conditions could shift markets into a more supportive phase, noting that markets have often rebounded after initial declines during past conflicts.
As of 10:07 a.m., the benchmark KOSPI fell 2.72 percent to 5,764.10, while the KOSDAQ declined 1.88 percent to 1,142.52.
Japan’s Nikkei 225 dropped 2.59 percent to 53,806.16 in morning trading, as rising energy costs threatened corporate earnings in import-dependent Japan while Fed-driven rate concerns further dampened sentiment.
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